Complementary Brand Enhances Position in High End of Luxury Watch Market

PARAMUS, N.J., Dec. 22 /PRNewswire-FirstCall/ -- Movado Group, Inc.
(NYSE: MOV) today announced that it has agreed to acquire Ebel, one of the
world's premier luxury watch brands, from LVMH, Moet Hennessy Louis Vuitton,
(Reuters: LVMH.PA) in an all-cash transaction valued at approximately $47.3
million (61.5 million CHF), subject to closing adjustments. The transaction
is expected to close during the first quarter of calendar 2004.

Founded in Switzerland in 1911, Ebel is a world-class brand globally
recognized for its iconic product designs, technological innovation and
superior quality. The brand, which is expected to generate approximately
$65.0 million (85.0 million CHF) of net sales in calendar 2003, is currently
sold at price points in the $1,500 to $10,000 range in approximately 1,800
doors worldwide. The Ebel business will remain based in La Chaux de Fonds,
Switzerland.

The addition of Ebel, with its distinctive, internationally recognized
watch families such as Beluga and Classic Wave, is consistent with the
Company's strategic goals to extend Movado Group's presence within the luxury
watch category and increase its global presence, particularly in Europe and
Japan.

Efraim Grinberg, President and Chief Executive Officer, stated, "The
addition of Ebel represents a compelling strategic opportunity for Movado
Group and marks our first acquisition since the Movado brand in 1983. With a
rich heritage recognized by discerning consumers for nearly a century, Ebel is
an excellent complement to our existing portfolio of brands. It will
significantly expand our presence in the high end of the luxury watch
category. At the same time, the transaction is consistent with our overall
portfolio strategy of differentiating each of our brands in the marketplace
while leveraging production and distribution capabilities."

Rick Cote, Executive Vice President and Chief Operating Officer,
commented, "We are very pleased to add this world-renowned brand to our
portfolio. Movado Group's strong balance sheet allows the flexibility to
finance the acquisition entirely with our cash on hand. Over the past several
years, our entire organization has worked diligently to develop an efficient
and scalable infrastructure in the U.S. We see significant opportunities to
leverage our strong infrastructure to enhance Ebel's presence in the U.S.
And, with over 70% of its sales outside of North America, Ebel will serve as a
solid platform to increase Movado's presence in those international markets we
have been targeting for growth, including Germany, the United Kingdom, France
and Japan."

Mr. Cote continued, "While we are still in the early stages of developing
our detailed plans with respect to Ebel, we currently anticipate that the
integration of Ebel into Movado Group will have a negative impact of $0.10 to
$0.20 per share for the fiscal year ending January 31, 2005. Excluding this
impact, the Company expects earnings per share to grow 10% to 12% in fiscal
2005. We expect the Ebel transaction to be accretive beginning in fiscal
2006."

Mr. Grinberg concluded, "Ebel has long been supported by extensive
marketing and is well positioned in the luxury watch category. We intend to
provide the resources to build upon Ebel's heritage and maximize the potential
of the brand while generating long-term value for our shareholders."

The transaction, which has been approved by the Boards of Directors of the
relevant companies, is subject to customary closing conditions. Neither
company's shareholders are required to approve the transaction.

The Company's management will host a conference call tomorrow, December
23, 2003 at 8:30 a.m. Eastern Time. A live broadcast of the call will be
available on the Company's website: www.movadogroupinc.com. This call will
be archived online within one hour of the completion of the conference call.

This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. The Company
has tried, whenever possible, to identify these forward-looking statements
using words such as "expects," "anticipates," "believes," "targets," "goals,"
"projects," "intends," "plans," "seeks," "estimates," "projects," "may,"
"will," "should" and similar expressions. Similarly, statements in this press
release that describe the Company's business strategy, outlook, objectives,
plans, intentions or goals are also forward-looking statements. Accordingly,
such forward-looking statements involve known and unknown risks, uncertainties
and other factors that could cause the Company's actual results, performance
or achievements to differ materially from those expressed in, or implied by,
these statements. These risks and uncertainties may include, but are not
limited to: the Company's ability to successfully introduce and sell new
products, the Company's ability to successfully integrate the operations of
Ebel without disruption to its other business activities, the possibility that
the acquisition of Ebel may not be completed, changes in consumer demand for
the Company's products, risks relating to the retail industry, import
restrictions, competition, seasonality and the other factors discussed in the
Company's Annual Report on Form 10-K and other filings with the Securities and
Exchange Commission. These statements reflect the Company's current beliefs
and are based upon information currently available to it. Be advised that
developments subsequent to this press release are likely to cause these
statements to become outdated with the passage of time.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Movado Group Inc's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.